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are the hubs manual or auto if the hubs are manual look at the center of the front wheels there is a little switch in the center should say lock one way and un lock the other just twist switch to lock on both wheels then pull leaver in the truck to 4hi or low and away you go just remember to unlock the hubs when you are in 2 wheel drive

I had the same thing happen. The automatic locking hubs are faulty, causing one or both hubs to try to engage or disengage onto the front driveshaft. This makes the clicking noise and loud clunking that you hear. You may notice your steering pulling to one side of the road,because one hub is locked in. Replace the automatic hubs with new ones, do not try to fix the old ones. I liked the
convience of automatic hubs but replaced mine with manual hubs, there just way more reliable.

hub locks are worn out, especially if you cant turn them. And its not high and low. Its either auto?lock for switch style shift, or free /lock for old style floor shift. also hub seals could be worn or vacuum system not working.

They are operated by vacuum. Check to make sure the vacuum lines are connected and not ripped or anything. If that checks out fine, remove the vacuum line from the hub and apply vacuum to the hub, if the hubs lock then the problem is in the vacuum line or switch.

you can convert auto to manual hubs warn hubs or milemarker makes good hubs. As far as lift a suspension lift is better. This really depends on what you want to do with truck. I had a 97 f250 diesel 4x4 and put front leving springs on it and new poly spring bushings and was able to clear 35" tires on factory wheels. The best exhaust upgrade is going to be a new down pipe from turbo to exhaust as far as straight pipe or muffler it depends on personal preference